Luis Garratón, Inc. gains rapid expansion

After a nine-month search, Luis Garratón, Inc. found the best pharmaceutical ERP software to run all three of its diverse business areas

Luis Garratón, Inc., Inc. has been a distributor of pharmaceuticals based in Bayamón, Puerto Rico, for over 50 years. “I purchased the company in 2004,” explains Raul Rodriguez, President and Owner, “and we have now expanded into two more income areas, consumer products and third-party distribution and warehousing services.”

Knowing there would be a dramatic increase in business, it was important for Luis Garratón, Inc. to find a single supply chain software solution that would incorporate one standard package to run all three business areas simultaneously.

The company found the best ERP solution for its business requirements: IBS Enterprise supply chain management software. “IBS Enterprise covers everything we need, from order management to customer service distribution and excellent warehouse management,” explains Rodriguez.

Total service

One reason for choosing IBS is the fact that the software and services come from one single company. Luis Garratón, Inc. saw different systems that covered pharmaceutical and consumer distribution as well as products designed for third-party warehousing. “We looked at many different products but IBS is the only system that has one integrated solution, able to cover all three of our business areas,” adds Rodriguez.

Luis Garratón, Inc. currently moves over five million cases annually, so it was also important to find software that would support a high number of transactions and allow more users to be added as needed. “With IBS Enterprise in place I can easily increase my business by 300 percent and would not require system changes,” says Rodriquez.

IBS has helped LGI in many ways, but especially when it comes to providing good customer service. “If we have a question or need something new, IBS provides us with fast answers. This good-service culture means that we, in turn, deliver our products faster. It’s very important to receive good customer service to be able to give good customer service,” explains Rodriguez.

Forecast accuracy

The company finds IBS forecasting to be particularly useful. “IBS Enterprise includes a very good forecasting system which helps to maintain the inventory levels as we need them,” states Rodriguez. Forecast accuracy is the key to effective inventory control. Because of IBS supply chain software’s ability to source data from anywhere, warehouse managers are provided with the best possible information for planning and decision-making.

LGI operates two warehouses – one with 80,000 square feet in Bayamon and a 60,000 square feet facility in Carolina. The IBS warehouse management system helps to invest only in the inventory and warehouse space that is needed. For picking purposes, IBS software allows the company to use a pick order for products based on volume of business. This makes it more effective and efficient to find stock in the warehouse. In the near future, LGI plans to implement the IBS RF (radio frequency) functionality to ensure even faster delivery of goods.

Instant access to inventory and reporting

When it comes to procurement, IBS software helps LGI to obtain the best goods at the best prices while building and keeping strong supplier relationships. The company has been able to adapt dynamically to market changes with instant access to its inventory and supplier details. “IBS software has paved our way to shorter lead-times, improved cash-to-cash cycles and reduced returns handling,” states Rodriguez.

One of the big problems LGI had with its previous system was the standard of reporting. It’s much easier with IBS Enterprise. Upon request, without the need for any programming, reports are available as and when they are needed. Rodriquez comments, “I can see how much we are selling by supplier, by product, by customer and so many other combinations. This means on a daily basis I see the picture of my whole business.”

Chargebacks

LGI also make use of the integrated Chargeback functionality built into IBS Enterprise. This allows the company to create, track and manage financial agreements that have been made with its suppliers and/or customers. The software can accurately track the actual profitability of a sale at the transaction level, versus using complicated spreadsheets or performing confusing GL adjustments or accruals. Claims can be made either through accounts payable or accounts receivable transactions that are fully supported with transaction details.

The unprecedented flexibility of this software allows LGI to track the most complex agreement or simple business partner rebates. The company can see all rebates, listed individually, and the effect of those rebates on the costing and pricing structure of each order. “The IBS chargeback functionality has taken away the complexities we had with the old system and at the same time we can see quickly and easily the real costs of our business,” explains Rodriguez.

With IBS software in place, LGI is now able to concentrate on its big expansion plans knowing that its supply chain can handle any increase in its existing business plans, plus any new ventures.

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Company profile

Name: Luis Garratón, Inc.

Region: Puerto Rico

Operation: Distribution and warehousing

Products: More than 3,200 pharmaceutical and consumer products as well as warehousing services

Employees: 140

Website: www.luisgarraton.com

Issues

  • Creation of new business areas
  • Need for one solution to cover everything
  • Fast-growing company
  • Third-party warehousing requirement
  • Old system lacking functionality
  • Need to reduce inventory levels.

Solution

Supply chain software solution with modules for:

  • Sales order management
  • Procurement
  • Distribution
  • Inventory management
  • Warehouse management
  • Business intelligence
  • Financials.

Capabilities

  • RF (radio frequency) control
  • Company-wide performance measurement
  • Instant access
  • Integrated chargeback functionality
  • Supply chain visibility.

Value

  • Faster deliveries
  • Higher transaction volumes
  • Improved customer service
  • Reduced time to pick goods in the warehouse
  • More efficient and effective warehouse
  • Reduced returns handling
  • Prepared for increased business.